Correlation Between Genolution and AptaBio Therapeutics
Can any of the company-specific risk be diversified away by investing in both Genolution and AptaBio Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Genolution and AptaBio Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genolution and AptaBio Therapeutics, you can compare the effects of market volatilities on Genolution and AptaBio Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Genolution with a short position of AptaBio Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genolution and AptaBio Therapeutics.
Diversification Opportunities for Genolution and AptaBio Therapeutics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genolution and AptaBio is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Genolution and AptaBio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptaBio Therapeutics and Genolution is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Genolution are associated (or correlated) with AptaBio Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptaBio Therapeutics has no effect on the direction of Genolution i.e., Genolution and AptaBio Therapeutics go up and down completely randomly.
Pair Corralation between Genolution and AptaBio Therapeutics
Assuming the 90 days trading horizon Genolution is expected to under-perform the AptaBio Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Genolution is 1.5 times less risky than AptaBio Therapeutics. The stock trades about -0.04 of its potential returns per unit of risk. The AptaBio Therapeutics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,310,000 in AptaBio Therapeutics on August 27, 2024 and sell it today you would lose (682,000) from holding AptaBio Therapeutics or give up 52.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genolution vs. AptaBio Therapeutics
Performance |
| Timeline |
| Genolution |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AptaBio Therapeutics |
Genolution and AptaBio Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genolution and AptaBio Therapeutics
The main advantage of trading using opposite Genolution and AptaBio Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genolution position performs unexpectedly, AptaBio Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AptaBio Therapeutics will offset losses from the drop in AptaBio Therapeutics' long position.| Genolution vs. WooDeumGee Farm Co, | Genolution vs. Seohee Construction Co | Genolution vs. Gyeongnam Steel Co | Genolution vs. Samhyun Steel Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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